Random Inc. Cost data for the last 3 years Overhead Costs Units Produced January-17 $78,000 5,679 February-17 $91,000 6,751 Use regression and show the equation used for Random to separate overhead into fixed and variable components. How much of the change in costs will this equation predict? March-17 $100,000 7,539 April-17 $78,000 5,335 What is the variable cost per unit for overhead? Round to the nearest cent May-17 $89,000 6,480 June-17 $93,000 7,630 What is the fixed overhead cost per month? Round to the nearest dollar July-17 $87,000 6,331 August-17 $94,000 7,998 September-17 $81,000 5,943 Direct Mat October-17 $85,000 7,081 November-17 $104,500 7,694 December-17 $104,000 8,903 Random analyzes their other costs and finds the following (in addition to the overhead costs above): Each unit of inventory uses 2 gallons of materials and each gallon costs $3 Direct Labor On average a worker can produce 16 units of product in an 8 hour shift and gets paid $180 for that shift Each month Random spends $26,500 on selling and administration costs Sales price for 2021 is estimated at $36 per unit January-18 $92,000 7,485 February-18 $104,000 9,062 March-18 $96,000 8,189 What is the contribution margin per unit? Round to the nearest cent April-18 $77,000 5,410 May-18 $83,000 6,556 How many units does Random need to sell in a month to break even in 2021? June-18 $95,000 7,850 July-18 $65,000 4,836 How many units does Random need to sell in a month to make $25,000 of profit before taxes? August-18 $92,000 6,828 September-18 $77,000 6,221 How much in dollars must Random sell in a month to make $100,000 in profit before taxes? October-18 $105,000 8,238 November-18 $103,000 7,842 December-18 $96,000 8,086 Show the predicted contribution margin format income statement for January if production and sales are 7,100 units for January 2021 January-19 $84,500 February-19 $100,000 6,887 8,438 March-19 $83,000 5,829 Show the predicted contribution margin format income statement for February 2021 if sales increase from January by 200 units. Also in February, selling costs are increased by $2,000/month, a new machine increases fixed overhead by $6,000 April-19 $79,000 5,639 and makes it so that workers can make 24 in a shift (changes the direct labor per unit) May-19 $74,000 5,703 Other costs should be consistent with January. June-19 $81,000 6,455 July-19 $82,000 6,370 August-19 $74,000 5,684 September-19 $72,000 4,906 October-19 $73,000 5,026 November-19 $92,000 7,630 December-19 $82,000 4,014